The Watchers Island

A long time ago on a small island near the harbor of Tam a tall lighthouse was built to guide ships on their passage through The Blue Bay. Now, a few millennia later the shining beacon is in ruins. Instead a shipyard and a prison were built here by the lords of the town. Only connected to the mainland by a massive wall through the water, which protects the harbor from open sea, it is near impossible to escape from here.

History of the lighthouse

During the age of flourishing, the talian emperor at that time decided to built a monumental lighthouse near Tam to provide guidance to ships on the trade routes from the capital, The Order's Watch, to the north-west of the continent. Especially the dangers of the blue bay, both from the unstable weather and deep sea monsters living there, should be averted with the beacon.
Architects and builders from all over the empire were hired, massive stone blocks from Endless Mountains were imported and magicians of the Holy Order of Ras were instructed to help built it. In under a century the humans erected a nearly three hundred meters tall tower made out stone, standing tall on an island near Tam, and a giant wall breaching the sea between the mainland and the island. But no ordinary flame could shine bright enough to cover the whole bay. So the wizards conjured an everlasting flame, shining brighter than anything else ever seen. On top of it, the light followed ships in the cove and protected them from most dangers of the ocean, giving the island its name.
For nearly a thousand years, the lighthouse stood tall on the western coast of Tal'Lyra. But during the Windsong Rebellion, like most of the talian towns, Tam was shook by an earthquake of unseen intensity. Much of the town and the lighthouse were destroyed. Only the magic flame kept on burning with its cold and bright flame. 

New Purpose 

After the rebellion, the island was lied fallow and kept on emitting its iconic light to the town. Only after a centuries the lord of Tam decided to rebuild on the isle. While there weren't enough resource or gifted men to erect the lighthouse once again, the unique location of the island was perfect for a prison, which no one could ever escape. Around the still shining beacon a massive complex was built to inhabit up to two hundred prisoners and finally, the town got its dark nights back. 
Again, after a few hundred years, it was decided to also build a new shipyard near the prison, so the unused workforce could be utilized for profit. While Tam itself is to small to upkeep a big fleet, the here built warships were sold to everyone who could pay the right price. 

The Situation today

Approximately 150 prisoners are kept here today and are working on new ships for the continent. But this might soon come to an end, since the massive wall through the sea slowly crumbles to the tides. Since the magic that was once used in building them is long lost, no one is able to repair it.